Asian currencies gain in first reaction to Sino-US trade deal

BENGALURU: Southeast Asian equity markets gained on Tuesday, while regional currencies benefited from a faltering US dollar, in their first reaction to the US-China trade deal, although there was the overhang of caution that weighed on Asian markets broadly.

The financial markets in Thailand, Malaysia, Indonesia, the Philippines and Singapore were closed for the Vesak Day holiday on Monday, when global markets rallied after the United States and China struck a deal over the weekend to temporarily slash reciprocal tariffs.

Malaysian shares surged 2.1% to their highest since March 3 on resuming trade on Tuesday, while Philippine stocks advanced 1.6% to levels unseen since January 8. Thai stocks

rose 0.8%, and Singapore’s benchmark was up 0.5%.

A number of Southeast Asian countries are economically reliant on China.

Taiwan’s benchmark mirrored the 1% gain from the previous session, though South Korean stocks were flat, taking a breather after a more-than-1% jump on Monday.

The rally in the broader Asian stock markets also ran out of steam as resurgent worries about US President Donald Trump’s trade policies and their impact on the global economy kept risk sentiment in check.